Stamp duty worry

Felix Chaudhary
Friday, August 29, 2014

BUSINESSES in the Western Division have called on the government to relook at the imposition of increased stamp duty on tenants which they claim is affecting small to medium enterprises and residential tenants.

Nadi businessman Prem Singh said the tax was unfairly imposed for a number of reasons.

"Previously, the stamp duty on tenants was one per cent of the annual rental," he explained.

"What has happened now is they are taxing $1000 for commercial and tourism-based tenants and $500 for residential tenants.

"And this is really affecting the ability of SMEs and low income earners to meet their financial obligations.

"While this may be a form of revenue earning for the government, it is hurting small business operators and ordinary people."

According to the Stamp Duties Act, residential tenants are required by law to pay a stamp duty fee of $500.